80_FR_56711 80 FR 56530 - Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Schedule of Fees

80 FR 56530 - Self-Regulatory Organizations; International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Schedule of Fees

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 80, Issue 181 (September 18, 2015)

Page Range56530-56531
FR Document2015-23397

Federal Register, Volume 80 Issue 181 (Friday, September 18, 2015)
[Federal Register Volume 80, Number 181 (Friday, September 18, 2015)]
[Notices]
[Pages 56530-56531]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-23397]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-75911; File No. SR-ISE-2015-29]


Self-Regulatory Organizations; International Securities Exchange, 
LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule 
Change To Amend the Schedule of Fees

September 14, 2015.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(the ``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given 
that, on September 9, 2015, the International Securities Exchange, LLC 
(the ``Exchange'' or the ``ISE'') filed with the Securities and 
Exchange Commission (the ``Commission'') the proposed rule change as 
described in Items I, II, and III below, which Items have been prepared 
by the self-regulatory organization. The Commission is publishing this 
notice to solicit comments on the proposed rule change from interested 
persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The ISE proposes to amend the Schedule of Fees to eliminate the 
disaster recovery network fee charged to telecommunications vendors 
that connect to the Exchange's backup datacenter in New York. The text 
of the proposed rule change is available on the Exchange's Web site 
(http://www.ise.com), at the principal office of the Exchange, and at 
the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the self-regulatory organization 
included statements concerning the purpose of, and basis for, the 
proposed rule change and discussed any comments it received on the 
proposed rule change. The text of these statements may be examined at 
the places specified in Item IV below. The self-regulatory organization 
has prepared summaries, set forth in sections A, B and C below, of the 
most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for,the Proposed Rule Change

1. Purpose
    The Exchange rents cabinet space in its backup datacenter to 
unaffiliated telecommunications vendors that are responsible for 
redistributing connectivity to market participants that desire access 
in order to maintain connectivity to the ISE when the primary 
datacenter is not operational.\3\ The disaster recovery network fee 
assessed to these telecommunications vendors is based on the amount of 
cabinet space used by each vendor, and is $2,300 per month for a half-
cabinet and $2,800 per month for a full cabinet. The fee is designed to 
recover the cost of running the backup datacenter, including space, 
power, and cooling, and also reflects the value that these 
telecommunications vendors receive from contracting with market 
participants that use their services to connect to the backup 
datacenter.\4\ As the Exchange is in the process of moving its backup 
datacenter to a new facility that members will be able to connect to 
directly, the Exchange now proposes to eliminate the fees charged to 
telecommunications vendors that are connected to the current site. The 
telecommunications vendors that are connected to the backup datacenter 
provide access to members that need connectivity, and are expected to 
keep providing this access while members are gradually transferred over 
to the new disaster recovery site. With the upcoming changes, however, 
the telecommunication vendors, who have already paid substantial 
hardware and other costs in addition to the fees charged by the 
Exchange, may not be able to recoup fees from sufficient market 
participants to cover the cost of maintaining their connections during 
this period. The Exchange therefore believes that it is appropriate to 
eliminate the disaster recovery network fee at this time, and believes 
that doing so will allow telecommunications vendors to continue to 
provide access to the backup datacenter.
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    \3\ For operational reasons, market participants are not 
permitted to connect directly to the backup datacenter, and must go 
through a telecommunication vendor.
    \4\ Telecommunications vendors contract with interested market 
participants that access the datacenter through their services for a 
fee. With this arrangement, the fees that ISE charges 
telecommunications vendors can be spread across multiple market 
participants.

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[[Page 56531]]

2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with the provisions of Section 6 of the Act,\5\ in general, and Section 
6(b)(4) of the Act,\6\ in particular, in that it is designed to provide 
for the equitable allocation of reasonable dues, fees, and other 
charges among its members and other persons using its facilities.
---------------------------------------------------------------------------

    \5\ 15 U.S.C. 78f.
    \6\ 15 U.S.C. 78f(b)(4).
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    The Exchange believes that it is reasonable, equitable, and not 
unfairly discriminatory to eliminate the disaster recovery network fee 
as the Exchange is in the process of moving its backup datacenter to a 
new facility. During the period of this move, the Exchange expects that 
the telecommunications vendors currently connected to the backup 
datacenter will continue to provide access to interested parties in 
order to facilitate access to the Exchange in the event the primary 
datacenter is not operational. As members move their connections over 
to the new backup facility, however, the telecommunications vendors 
will be able to provide service to an increasingly narrow field of 
market participants. Given the expected reduction in the demand for 
connectivity through the telecommunication vendors, and the substantial 
hardware and other costs the vendors have already incurred in 
establishing and maintaining connectivity to the backup datacenter, the 
Exchange has determined to eliminate the disaster recovery network fee. 
The Exchange believes that eliminating this fee during the crossover 
period will facilitate access to the backup datacenter while the 
Exchange moves over to its new facility by making it economical for the 
telecommunications vendors to remain connected and to continue to 
provide connectivity to interested market participants.

B. Self-Regulatory Organization's Statement on Burden on Competition

    In accordance with Section 6(b)(8) of the Act,\7\ the Exchange does 
not believe that the proposed rule change will impose any burden on 
intermarket or intramarket competition that is not necessary or 
appropriate in furtherance of the purposes of the Act. The Exchange is 
eliminating a fee charged to telecommunications vendors connected to 
the backup datacenter in anticipation of its move to a new facility. 
This change will facilitate access to the backup datacenter by making 
it economical for the telecommunications vendors to maintain their 
connections so that market participants can connect through them until 
they are moved over to the new backup datacenter, and will not impose 
any burden on competition.
---------------------------------------------------------------------------

    \7\ 15 U.S.C. 78f(b)(8).
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C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants or Others

    The Exchange has not solicited, and does not intend to solicit, 
comments on this proposed rule change. The Exchange has not received 
any unsolicited written comments from members or other interested 
parties.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act \8\ and subparagraph (f)(2) of Rule 19b-4 
thereunder,\9\ because it establishes a due, fee, or other charge 
imposed by ISE.
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    \8\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \9\ 17 CFR 240.19b-4(f)(2).
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    At any time within 60 days of the filing of such proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act. If the Commission 
takes such action, the Commission shall institute proceedings to 
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views and 
arguments concerning the foregoing, including whether the proposed rule 
change is consistent with the Act. Comments may be submitted by any of 
the following methods:

Electronic Comments

     Use the Commission's Internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to rule-comments@sec.gov. Please include 
File No. SR-ISE-2015-29 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities 
and Exchange Commission, 100 F Street NE., Washington, DC 20549-1090.

All submissions should refer to File No. SR-ISE-2015-29. This file 
number should be included on the subject line if email is used. To help 
the Commission process and review your comments more efficiently, 
please use only one method. The Commission will post all comments on 
the Commission's Internet Web site (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all 
written statements with respect to the proposed rule change that are 
filed with the Commission, and all written communications relating to 
the proposed rule change between the Commission and any person, other 
than those that may be withheld from the public in accordance with the 
provisions of 5 U.S.C. 552, will be available for Web site viewing and 
printing in the Commission's Public Reference Room, 100 F Street NE., 
Washington, DC 20549, on official business days between the hours of 
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available 
for inspection and copying at the principal office of the Exchange. All 
comments received will be posted without change; the Commission does 
not edit personal identifying information from submissions. You should 
submit only information that you wish to make available publicly. All 
submissions should refer to File No. SR-ISE-2015-29 and should be 
submitted on or before October 9, 2015.
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    \10\ 17 CFR 200.30-3(a)(12).

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\10\
Brent J. Fields,
Secretary.
[FR Doc. 2015-23397 Filed 9-17-15; 8:45 am]
BILLING CODE 8011-01-P



                                              56530                         Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Notices

                                              Comments may be submitted by any of                       SECURITIES AND EXCHANGE                                 A. Self-Regulatory Organization’s
                                              the following methods:                                    COMMISSION                                              Statement of the Purpose of, and
                                                                                                                                                                Statutory Basis for,the Proposed Rule
                                              Electronic Comments
                                                                                                        [Release No. 34–75911; File No. SR–ISE–                 Change
                                                • Use the Commission’s Internet                         2015–29]                                                1. Purpose
                                              comment form (http://www.sec.gov/
                                              rules/sro.shtml); or                                      Self-Regulatory Organizations;                             The Exchange rents cabinet space in
                                                                                                        International Securities Exchange,                      its backup datacenter to unaffiliated
                                                • Send an email to rule-comments@
                                                                                                        LLC; Notice of Filing and Immediate                     telecommunications vendors that are
                                              sec.gov. Please include File Number SR–
                                                                                                        Effectiveness of Proposed Rule                          responsible for redistributing
                                              CBOE–2015–076 on the subject line.
                                                                                                        Change To Amend the Schedule of                         connectivity to market participants that
                                              Paper Comments                                            Fees                                                    desire access in order to maintain
                                                                                                                                                                connectivity to the ISE when the
                                                • Send paper comments in triplicate                     September 14, 2015.
                                                                                                                                                                primary datacenter is not operational.3
                                              to Secretary, Securities and Exchange                        Pursuant to Section 19(b)(1) of the                  The disaster recovery network fee
                                              Commission, 100 F Street NE.,                             Securities Exchange Act of 1934 (the                    assessed to these telecommunications
                                              Washington, DC 20549–1090.                                ‘‘Act’’) 1 and Rule 19b–4 thereunder,2                  vendors is based on the amount of
                                              All submissions should refer to File                      notice is hereby given that, on                         cabinet space used by each vendor, and
                                              Number SR–CBOE–2015–076. This file                        September 9, 2015, the International                    is $2,300 per month for a half-cabinet
                                              number should be included on the                          Securities Exchange, LLC (the                           and $2,800 per month for a full cabinet.
                                              subject line if email is used. To help the                ‘‘Exchange’’ or the ‘‘ISE’’) filed with the             The fee is designed to recover the cost
                                              Commission process and review your                        Securities and Exchange Commission                      of running the backup datacenter,
                                              comments more efficiently, please use                     (the ‘‘Commission’’) the proposed rule                  including space, power, and cooling,
                                              only one method. The Commission will                      change as described in Items I, II, and                 and also reflects the value that these
                                              post all comments on the Commission’s                     III below, which Items have been                        telecommunications vendors receive
                                              Internet Web site (http://www.sec.gov/                    prepared by the self-regulatory                         from contracting with market
                                              rules/sro.shtml). Copies of the                           organization. The Commission is                         participants that use their services to
                                              submission, all subsequent                                publishing this notice to solicit                       connect to the backup datacenter.4 As
                                              amendments, all written statements                        comments on the proposed rule change                    the Exchange is in the process of
                                              with respect to the proposed rule                         from interested persons.                                moving its backup datacenter to a new
                                              change that are filed with the                                                                                    facility that members will be able to
                                                                                                        I. Self-Regulatory Organization’s                       connect to directly, the Exchange now
                                              Commission, and all written                               Statement of the Terms of Substance of
                                              communications relating to the                                                                                    proposes to eliminate the fees charged
                                                                                                        the Proposed Rule Change                                to telecommunications vendors that are
                                              proposed rule change between the
                                              Commission and any person, other than                        The ISE proposes to amend the                        connected to the current site. The
                                              those that may be withheld from the                       Schedule of Fees to eliminate the                       telecommunications vendors that are
                                              public in accordance with the                             disaster recovery network fee charged to                connected to the backup datacenter
                                              provisions of 5 U.S.C. 552, will be                       telecommunications vendors that                         provide access to members that need
                                              available for Web site viewing and                        connect to the Exchange’s backup                        connectivity, and are expected to keep
                                              printing in the Commission’s Public                       datacenter in New York. The text of the                 providing this access while members are
                                              Reference Room, 100 F Street NE.,                         proposed rule change is available on the                gradually transferred over to the new
                                              Washington, DC 20549 on official                          Exchange’s Web site (http://                            disaster recovery site. With the
                                              business days between the hours of                        www.ise.com), at the principal office of                upcoming changes, however, the
                                              10:00 a.m. and 3:00 p.m. Copies of such                   the Exchange, and at the Commission’s                   telecommunication vendors, who have
                                              filing also will be available for                         Public Reference Room.                                  already paid substantial hardware and
                                              inspection and copying at the principal                                                                           other costs in addition to the fees
                                              office of the Exchange. All comments                      II. Self-Regulatory Organization’s                      charged by the Exchange, may not be
                                              received will be posted without change;                   Statement of the Purpose of, and                        able to recoup fees from sufficient
                                              the Commission does not edit personal                     Statutory Basis for, the Proposed Rule                  market participants to cover the cost of
                                              identifying information from                              Change                                                  maintaining their connections during
                                              submissions. You should submit only                                                                               this period. The Exchange therefore
                                                                                                          In its filing with the Commission, the                believes that it is appropriate to
                                              information that you wish to make                         self-regulatory organization included
                                              available publicly. All submissions                                                                               eliminate the disaster recovery network
                                                                                                        statements concerning the purpose of,                   fee at this time, and believes that doing
                                              should refer to File Number SR–CBOE–                      and basis for, the proposed rule change
                                              2015–076, and should be submitted on                                                                              so will allow telecommunications
                                                                                                        and discussed any comments it received                  vendors to continue to provide access to
                                              or before October 9, 2015.                                on the proposed rule change. The text                   the backup datacenter.
                                                For the Commission, by the Division of                  of these statements may be examined at
                                              Trading and Markets, pursuant to delegated                the places specified in Item IV below.                     3 For operational reasons, market participants are
                                              authority.24                                              The self-regulatory organization has                    not permitted to connect directly to the backup
tkelley on DSK3SPTVN1PROD with NOTICES




                                              Brent J. Fields,                                          prepared summaries, set forth in                        datacenter, and must go through a
                                                                                                                                                                telecommunication vendor.
                                              Secretary.                                                sections A, B and C below, of the most                     4 Telecommunications vendors contract with

                                              [FR Doc. 2015–23394 Filed 9–17–15; 8:45 am]               significant aspects of such statements.                 interested market participants that access the
                                              BILLING CODE 8011–01–P
                                                                                                                                                                datacenter through their services for a fee. With this
                                                                                                                                                                arrangement, the fees that ISE charges
                                                                                                          1 15   U.S.C. 78s(b)(1).                              telecommunications vendors can be spread across
                                                24 17   CFR 200.30–3(a)(12).                              2 17   CFR 240.19b–4.                                 multiple market participants.



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                                                                           Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Notices                                                   56531

                                              2. Statutory Basis                                       economical for the telecommunications                    should be included on the subject line
                                                 The Exchange believes that the                        vendors to maintain their connections                    if email is used. To help the
                                              proposed rule change is consistent with                  so that market participants can connect                  Commission process and review your
                                              the provisions of Section 6 of the Act,5                 through them until they are moved over                   comments more efficiently, please use
                                              in general, and Section 6(b)(4) of the                   to the new backup datacenter, and will                   only one method. The Commission will
                                              Act,6 in particular, in that it is designed              not impose any burden on competition.                    post all comments on the Commission’s
                                              to provide for the equitable allocation of                                                                        Internet Web site (http://www.sec.gov/
                                                                                                       C. Self-Regulatory Organization’s
                                              reasonable dues, fees, and other charges                                                                          rules/sro.shtml). Copies of the
                                                                                                       Statement on Comments on the
                                              among its members and other persons                                                                               submission, all subsequent
                                                                                                       Proposed Rule Change Received From
                                              using its facilities.                                                                                             amendments, all written statements
                                                                                                       Members, Participants or Others
                                                 The Exchange believes that it is                                                                               with respect to the proposed rule
                                              reasonable, equitable, and not unfairly                    The Exchange has not solicited, and                    change that are filed with the
                                              discriminatory to eliminate the disaster                 does not intend to solicit, comments on                  Commission, and all written
                                              recovery network fee as the Exchange is                  this proposed rule change. The                           communications relating to the
                                              in the process of moving its backup                      Exchange has not received any                            proposed rule change between the
                                              datacenter to a new facility. During the                 unsolicited written comments from                        Commission and any person, other than
                                              period of this move, the Exchange                        members or other interested parties.                     those that may be withheld from the
                                              expects that the telecommunications                      III. Date of Effectiveness of the                        public in accordance with the
                                              vendors currently connected to the                       Proposed Rule Change and Timing for                      provisions of 5 U.S.C. 552, will be
                                              backup datacenter will continue to                       Commission Action                                        available for Web site viewing and
                                              provide access to interested parties in                                                                           printing in the Commission’s Public
                                              order to facilitate access to the Exchange                  The foregoing rule change has become                  Reference Room, 100 F Street NE.,
                                              in the event the primary datacenter is                   effective pursuant to Section                            Washington, DC 20549, on official
                                              not operational. As members move their                   19(b)(3)(A)(ii) of the Act 8 and                         business days between the hours of
                                              connections over to the new backup                       subparagraph (f)(2) of Rule 19b–4                        10:00 a.m. and 3:00 p.m. Copies of such
                                              facility, however, the                                   thereunder,9 because it establishes a                    filing also will be available for
                                              telecommunications vendors will be                       due, fee, or other charge imposed by                     inspection and copying at the principal
                                              able to provide service to an                            ISE.                                                     office of the Exchange. All comments
                                              increasingly narrow field of market                         At any time within 60 days of the                     received will be posted without change;
                                              participants. Given the expected                         filing of such proposed rule change, the                 the Commission does not edit personal
                                              reduction in the demand for                              Commission summarily may                                 identifying information from
                                              connectivity through the                                 temporarily suspend such rule change if                  submissions. You should submit only
                                              telecommunication vendors, and the                       it appears to the Commission that such                   information that you wish to make
                                              substantial hardware and other costs the                 action is necessary or appropriate in the                available publicly. All submissions
                                              vendors have already incurred in                         public interest, for the protection of                   should refer to File No. SR–ISE–2015–
                                              establishing and maintaining                             investors, or otherwise in furtherance of                29 and should be submitted on or before
                                              connectivity to the backup datacenter,                   the purposes of the Act. If the                          October 9, 2015.
                                              the Exchange has determined to                           Commission takes such action, the
                                                                                                       Commission shall institute proceedings                     For the Commission, by the Division of
                                              eliminate the disaster recovery network                                                                           Trading and Markets, pursuant to delegated
                                              fee. The Exchange believes that                          to determine whether the proposed rule
                                                                                                                                                                authority.10
                                              eliminating this fee during the crossover                should be approved or disapproved.
                                                                                                                                                                Brent J. Fields,
                                              period will facilitate access to the                     IV. Solicitation of Comments                             Secretary.
                                              backup datacenter while the Exchange
                                              moves over to its new facility by making                   Interested persons are invited to                      [FR Doc. 2015–23397 Filed 9–17–15; 8:45 am]

                                              it economical for the                                    submit written data, views and                           BILLING CODE 8011–01–P

                                              telecommunications vendors to remain                     arguments concerning the foregoing,
                                              connected and to continue to provide                     including whether the proposed rule
                                              connectivity to interested market                        change is consistent with the Act.                       U.S. SMALL BUSINESS
                                              participants.                                            Comments may be submitted by any of                      ADMINISTRATION
                                                                                                       the following methods:
                                              B. Self-Regulatory Organization’s                                                                                 [Disaster Declaration #14460 and #14461]
                                              Statement on Burden on Competition                       Electronic Comments
                                                                                                                                                                South Carolina Disaster #SC–00028
                                                In accordance with Section 6(b)(8) of                    • Use the Commission’s Internet
                                              the Act,7 the Exchange does not believe                  comment form (http://www.sec.gov/                        AGENCY: U.S. Small Business
                                              that the proposed rule change will                       rules/sro.shtml); or                                     Administration.
                                              impose any burden on intermarket or                        • Send an email to rule-comments@                      ACTION: Notice.
                                              intramarket competition that is not                      sec.gov. Please include File No. SR–ISE–
                                              necessary or appropriate in furtherance                  2015–29 on the subject line.                             SUMMARY:   This is a notice of an
                                              of the purposes of the Act. The                                                                                   Administrative declaration of a disaster
                                                                                                       Paper Comments                                           for the State of SOUTH CAROLINA
                                              Exchange is eliminating a fee charged to
                                              telecommunications vendors connected                       • Send paper comments in triplicate                    dated 09/10/2015.
                                              to the backup datacenter in anticipation                 to Secretary, Securities and Exchange                      Incident: Severe Storms and Flooding.
tkelley on DSK3SPTVN1PROD with NOTICES




                                              of its move to a new facility. This                      Commission, 100 F Street NE.,                              Incident Period: 08/30/2015 through
                                              change will facilitate access to the                     Washington, DC 20549–1090.                               08/31/2015.
                                              backup datacenter by making it                           All submissions should refer to File No.                 EFFECTIVE DATE: 09/10/2015.
                                                                                                       SR–ISE–2015–29. This file number                           Physical Loan Application Deadline
                                                5 15 U.S.C. 78f.                                                                                                Date: 11/09/2015.
                                                6 15 U.S.C. 78f(b)(4).                                   8 15   U.S.C. 78s(b)(3)(A)(ii).
                                                7 15 U.S.C. 78f(b)(8).                                   9 17   CFR 240.19b–4(f)(2).                              10 17   CFR 200.30–3(a)(12).



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Document Created: 2015-12-15 09:28:17
Document Modified: 2015-12-15 09:28:17
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
FR Citation80 FR 56530 

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